Tesla has introduced more budget-friendly versions of its Model S sedan and Model X SUV in the U.S. and Canada, though these models come with shorter driving ranges. The new vehicles will start being delivered next month.
The Model S “standard range” now costs $78,490 and can travel up to 320 miles (515 kilometers) on a full charge. This is significantly less than the more expensive dual-motor and tri-motor Plaid versions, which offer ranges of 405 miles and 396 miles, respectively.
Similarly, the new Model X is priced at $88,490 and has a range of 269 miles (433 kilometers). This is quite a bit shorter than the 348 miles (560 kilometers) provided by its more costly counterpart.
Both these new models use the same battery and motors as the higher-priced dual-motor versions, but their performance and range are restricted by software, confirmed by a Tesla sales representative.
Tesla is aiming to attract first-time electric vehicle buyers who may have previously been deterred by the high prices of such cars.
This move comes after Tesla has already implemented multiple rounds of price cuts across its lineup to keep up sales in an increasingly competitive electric vehicle market.
In its latest financial report for the quarter ending June 30, Tesla reported delivering a record 466,140 vehicles worldwide, surpassing Wall Street expectations by about 20,000 units.
Last year, Tesla delivered more than 1.3 million vehicles globally and remains the leading EV manufacturer in the U.S. However, it faces growing competition in China, its second-largest market, where local automakers like BYD have strong market presence.
In July, Tesla’s CEO mentioned the company might continue reducing prices due to the global economic situation but did not hint at the introduction of these new Model S and Model X variants released this week.